U.S. President Donald Trump downplayed the chance he would impose tariffs on Australia, a top U.S. ally, after the New York Times reported his administration considered doing so last week.

Asked about the report Sunday before a visit to the U.K., Trump said the United States had very strong ties with Australia, without directly mentioning tariffs.

“The Australian situation is interesting but the relationship is very strong,” Trump told reporters at the White House. “No, we’re doing a very special relationship with Australia.”

Some of Trump’s top trade advisers had urged tariffs on Australia to stem a surge of aluminum from the country over the past year, the New York Times reported, citing people familiar with the discussions. The Trump administration at least temporarily decided not to take action after objections from officials at the Defense and State Departments, the report said.

Australian Prime Minister Scott Morrison said yesterday aluminum exporters are complying with the terms of a deal with the United States following the New York Times report.

Australia exports about A$500 million (US$347.00 million) in steel and aluminum to the United States each year.

As a close security ally of the United States and the most China-dependent economy in the developed world, Australia’s economy already had a lot to lose as the world’s two biggest trading nations lock horns.

China buys 35 percent of Australian exports, equivalent to about 8 percent of gross domestic product of the country.

Australia has long been a staunch ally of the United States and the prospect of the United States targeting Australian trade has received little analysis.

(SD-Agencies)